2026 Alabama income tax brackets
Single
| Taxable income | Rate |
|---|---|
| $0 – $500 | 2% |
| $500 – $3,000 | 4% |
| over $3,000 | 5% |
Married filing jointly
| Taxable income | Rate |
|---|---|
| $0 – $1,000 | 2% |
| $1,000 – $6,000 | 4% |
| over $6,000 | 5% |
Alabama's head of household brackets aren't loaded yet. For those statuses the calculator shows a labeled single-filer estimate.
How Alabama taxable income is figured
The 2026 Alabama standard deduction is $3,000 for single filers, $8,500 for married filing jointly and $5,200 for head of household. Pre-tax 401(k), health and HSA deductions are assumed to reduce Alabama wages the same way they reduce federal wages.
- Alabama's standard deduction phases down as income rises; the phase-down schedule isn't loaded yet, so this estimate uses the maximum deduction and may understate Alabama tax at higher incomes.
| Filing status | 2026 standard deduction |
|---|---|
| Single | $3,000 |
| Married filing jointly | $8,500 |
| Head of household | $5,200 |
Local income taxes in Alabama
Alabama cities may impose local occupational taxes on wages (e.g., Birmingham 1%, Gadsden 2%, Auburn 1%; range 0.5%-2% per the Alabama League of Municipalities 2026 survey) — withheld from wages and separate from the state income tax.
Local taxes are shown for information only. The calculator doesn't add them to your result.
Minimum wage, tips and overtime in Alabama
The minimum wage used for Alabama is $7.25 an hour. Tipped employees may be paid a cash wage of $2.13 with a tip credit of up to $5.12, as long as wages plus tips reach the full minimum. Check a shift with the tipped wage calculator.
No daily overtime rule; overtime follows the federal FLSA standard of 1.5x for hours over 40 in a workweek.
Alabama take-home pay at common salaries
| Salary | Federal | AL state | FICA | Take-home / yr | Per biweekly check |
|---|---|---|---|---|---|
| $40,000.00 | $2,620.00 | $1,810.00 | $3,060.00 | $32,510.00 | $1,250.38 |
| $60,000.00 | $5,020.00 | $2,810.00 | $4,590.00 | $47,580.00 | $1,829.99 |
| $85,000.00 | $9,870.00 | $4,060.00 | $6,502.50 | $64,567.50 | $2,483.37 |
| $120,000.00 | $17,570.00 | $5,810.00 | $9,180.00 | $87,440.00 | $3,363.08 |
Single filer, paid biweekly, no pre-tax deductions, 2026 rules. Computed by the same engine as the calculator above.
Alabama paycheck FAQs
- What is the Alabama income tax rate in 2026?
- Alabama taxes wages at rates from 2% to 5%, depending on taxable income.
- How much is taken out of a $60,000 salary in Alabama?
- For a single filer paid biweekly with no pre-tax deductions: federal income tax $5,020.00, Alabama income tax $2,810.00, Social Security $3,720.00 and Medicare $870.00. That leaves $47,580.00 a year, or $1,829.99 per paycheck. See the notes above for what this estimate leaves out.
- Does Alabama have a standard deduction?
- The 2026 Alabama standard deduction is $3,000 for single filers, $8,500 for married filing jointly and $5,200 for head of household. Pre-tax 401(k), health and HSA deductions are assumed to reduce Alabama wages the same way they reduce federal wages.
- Does Alabama have local income taxes?
- Alabama cities may impose local occupational taxes on wages (e.g., Birmingham 1%, Gadsden 2%, Auburn 1%; range 0.5%-2% per the Alabama League of Municipalities 2026 survey) — withheld from wages and separate from the state income tax.
- What is the tipped minimum wage in Alabama?
- $2.13 an hour in cash wages, with a tip credit of up to $5.12, so tips must bring the total to at least $7.25.
Sources for Alabama figures
Every Alabama figure on this page was last checked on against these sources:
- https://www.almonline.org/TaxRates.aspx — almonline.org (tax year 2026, checked 2026-10-18)
- https://www.dol.gov/agencies/whd/state/minimum-wage/tipped — dol.gov (tax year 2026, checked 2026-10-18)
Federal figures: see the methodology page.
Nearby states
More Alabama pay tools
- Overtime pay in Alabama
- Alabama tipped wage calculator
- All state paycheck calculators
- How the AL math works
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